I think I just stumbled on a bug. On my Windows 7 x64 host, I applied the new WDDM nVidia driver from WindowsUpdate this morning (9.18.13.0697).
In a Remote Desktop client session running inside a Windows 7 x86 guest with 3D accel turned on, I have fairly severe display artifacts. The problem clears up when I turn off 3D acceleration in the VM. This bug is easily reproducible.
It was working fine last night. I think the new nVidia driver is the culprit (or else it's responsible for tickling a VMware bug).
Anyone seen this before?